Do You Have to Be Married to Get a VA Loan Together?

VA loans offer a unique opportunity for military service members and veterans to achieve homeownership with favorable terms. Many individuals inquire about applying for a VA loan with another person, especially regarding marital status. Understanding the guidelines for joint applications is important for prospective borrowers. This article clarifies the requirements for various joint application scenarios, detailing who can apply together and the financial considerations.

Veteran Eligibility for VA Loans

Eligibility for a VA loan begins with the veteran’s service history, which must meet specific criteria established by the Department of Veterans Affairs. Generally, this includes active duty service for a minimum period, or specific periods of service for National Guard members and Reservists. The length of service required can vary depending on when and where the service occurred, with common requirements including 90 days of active service during wartime or 181 days of continuous active service during peacetime.

The primary document confirming a veteran’s eligibility is the Certificate of Eligibility (COE), which is issued by the VA. This certificate verifies that a veteran has met the service requirements and details their available entitlement, which is the amount the VA guarantees to the lender. Lenders use the COE to determine the portion of the loan the VA will back.

Joint Applications for Married Spouses

When a veteran is married, their spouse is generally permitted to be a co-borrower on a VA loan without needing to be a veteran themselves. This arrangement allows the couple to combine their incomes to qualify for a larger loan amount. The spouse’s credit history and debt-to-income ratio will be assessed by the lender as part of the application process.

The inclusion of the spouse’s income can enhance the couple’s borrowing capacity, making homeownership more accessible. The VA guarantee covers the entire loan amount when a veteran applies with their spouse, provided all other eligibility criteria are met.

Joint Applications for Unmarried Individuals

Applying for a VA loan with an unmarried individual introduces more specific requirements compared to applications involving married spouses. When a veteran applies with an unmarried non-veteran, the VA’s guarantee typically only covers the veteran’s portion of the loan. This means the non-veteran’s share of the loan will likely require a down payment, as it falls outside the VA’s guarantee, such as when a veteran and an unmarried non-veteran purchase a home.

Lenders will assess the income and credit of both individuals, and the loan structure will reflect the limited VA guarantee.

Two unmarried veterans can apply for a VA loan together, and both can utilize their individual VA loan entitlements. This allows them to combine their entitlements, potentially enabling them to secure a larger loan without a down payment, assuming sufficient combined entitlement is available. Each veteran’s service history and Certificate of Eligibility would be evaluated in this process.

In contrast, a VA loan is generally not available for two unmarried non-veterans seeking to purchase a home together. The VA loan program is specifically designed to assist eligible veterans and their spouses in achieving homeownership. Without at least one eligible veteran on the application, the unique benefits of a VA loan cannot be accessed.

Financial and Ownership Implications

Regardless of marital status, all co-borrowers on a VA loan are subject to a financial assessment by the lender. This assessment includes evaluating each applicant’s credit score and debt-to-income ratio to ensure they meet the lender’s underwriting standards. A higher credit score and a lower debt-to-income ratio generally improve the chances of loan approval and potentially more favorable terms.

All individuals named on the loan are equally responsible for its repayment. This joint responsibility means that if one borrower fails to make payments, the other borrower(s) remain legally obligated for the entire loan amount.

Property ownership for co-borrowers typically involves structures like joint tenancy or tenants in common. Joint tenancy implies equal ownership shares with rights of survivorship, meaning if one owner passes away, their share automatically transfers to the surviving owner(s). Tenants in common allows for unequal ownership shares and does not include rights of survivorship, meaning each owner can pass their share to their heirs.

At least one borrower, specifically the veteran, must intend to occupy the property as their primary residence. This occupancy requirement is a key aspect of the VA loan program, ensuring it provides homes for veterans.